Equity Method vs. FV Method Problem: Fill in the dollar changes caused in the Investment in Hudson account and in the revenue accounts (Unrealized Gain/Loss, Dividend Revenue or Equity Investment Income) account by each of the following transactions, assuming Crane Company uses (a) the fair value method - trading and (b) the equity method for accounting for its investments in Hudson Company. Fair Value Method Equity Method Investment Inc. Stmt Investment Inc. Stmt Transaction in Hudson Revenue in Hudson Revenue a. At the beginning of Year 1, Crane bought 25% of Hudsons common stock at its book value. Total book value of all Hudsons common stock was $800,000 on this date. b. During Year 1, Hudson reported $60,000 of net income and paid $30,000 of dividends. Also, the fair value of Hudsons stock increased by a total of $50,000. c. During Year 2, Hudson reported $30,000 of net income and paid $40,000 of dividends. Also, the fair value of Hudsons stock increased by a total of $20,000. d. During Year 3, Hudson reported a net loss of $10,000 but still paid $5,000 of dividends. Also, the fair value of Hudsons stock decreased by a total of $40,000. e. Indicate the Year 3 ending and/or cumulative balances.